How do I know if my super fund is complying with the law?

Here's how to understand if your super fund is complying with Australian law:

In Plain English

Your super fund's compliance is mainly determined by whether it meets the rules set out in the Superannuation Industry (Supervision) Act 1993. The Australian Prudential Regulation Authority (APRA) and the Commissioner of Taxation oversee super funds. They can issue notices to a fund confirming its compliance status. Generally, if your fund is a "complying superannuation fund", "complying approved deposit fund" or a "pooled superannuation trust" it means the fund meets the standards set by law. The Regulator (APRA or the Commissioner of Taxation) must give a notice to a trustee of an entity stating that the entity is complying if certain conditions are met, as outlined in section 41 of the Superannuation Industry (Supervision) Act 1993.

Detailed Explanation

The Superannuation Industry (Supervision) Act 1993 (SIS Act) sets the framework for the regulation of superannuation funds in Australia. Here's a breakdown of key aspects related to compliance:

  • Complying Funds: Section 40 of the Superannuation Industry (Supervision) Act 1993 allows the Regulator (APRA or the Commissioner of Taxation) to issue notices stating whether an entity is a "complying superannuation fund", a "complying approved deposit fund", or a "pooled superannuation trust". These notices indicate that the fund meets certain standards for compliance.
  • Revocation of Notices: If the Regulator issues a notice stating a fund is complying, and later issues another notice stating it is not complying, the second notice effectively cancels out the first one.
  • Regulator's Obligation to Notify: Section 41 of the Superannuation Industry (Supervision) Act 1993 outlines when the Regulator must provide a notice of compliance. This occurs when the entity meets the requirements to be a complying fund, complying approved deposit fund, or pooled superannuation trust for the current year of income, and either no prior notice has been given, or a previous non-compliance notice was issued.
  • Complying Superannuation Fund Definition: Section 42 of the Superannuation Industry (Supervision) Act 1993 specifies that an entity is a complying superannuation fund if it was a resident regulated superannuation fund at all times during the year of income when it existed.